Weeks of instability in the NT's ruling Country Liberal Party (CLP) came to a head on Friday when Mr Giles took action to try and stop the damaging rifts in his team.

Mr Giles has said if the move costs the CLP its parliamentary majority he was happy to govern in minority.

"Alison Anderson this afternoon will be suspended from the parliamentary wing from this point of time forward until further notice," Mr Giles said at a media conference.

"We are not governing with a gun to my head and I will not allow the government to be terrorised in any way, shape or form in this regard," Mr Giles said.

Two other MPs that had been backing Ms Anderson - Francis Xavier and Larisa Lee - have avoided suspension.

The trio had made a list of demands to Mr Giles, including a new Aboriginal Affairs Department be created, that all three MPs get promoted, and that four current ministers be dumped from Cabinet.

When there demands were not met they yesterday stormed out of parliament, shortly after proceedings began.

"To put a gun to my head, to Territorians' heads is not in the best interest of governance in the NT," Mr Giles said.

Mr Giles said Ms Anderson had led the group and he understood the CLP was planning a meeting where they may vote to expel her from the party.

In a day of bloodletting Mr Giles also sacked economics professor Don Fuller, who was campaign manager to Mr Xavier, and Ms Anderson's chief of staff Norman Fry.

"Neither of those two people were operating in the best interest of myself, of government or of the Northern Territory," Mr Giles said of the sackings.

The loss of support from Ms Anderson comes at a fragile time for the Giles government.

Although the CLP has an eight-seat majority in the 25-seat parliament, if all three of the rebel MPs cross the floor to vote with Labor, and his party loses a by-election that will be held on April 12, he could find himself in a minority government.

"I am happy to govern in minority," Mr Giles said.

"If the three of them want to walk out, you walk out. But I am telling you we are governing for the Northern Territory," he said.

But Mr Giles held out an olive branch to Ms Lee and Mr Xavier.

"I think that the opportunity is still there for Francis to work together to be part of that reform agenda," Mr Giles said.

"Should Larisa at any point in time want to re-engage I fully welcome that and I think there is an opportunity there."

Mr Giles hinted that the trio may be using the coming Blain by-election to sure-up their bargaining position.

"There are many who say that these activities are deliberately designed to cause disurbance during Blain and some would even go so far as saying that if we can make the Country Liberals lose Blain through instability, it provides them with a balance of power opportunity," Mr Giles said.

Labor leader Delia Lawrie said Mr Giles had gone from one internal crisis to the next.

"It's clear that Adam Giles has no control over his government or the conduct of his parliamentary colleagues," Ms Lawrie said.